A typical VC receives 1,000+ pitches per year and funds 2-5. Understanding what makes a plan investable — versus forgettable — is the first step to raising money.
What Investors Look for First
- The problem: is it real, large, and painful enough to matter?
- The solution: is it genuinely differentiated?
- The team: do these people have the expertise and grit to execute?
- The market: is the TAM large enough for venture returns?
- Traction: any evidence that real people want this?
Financial Metrics Investors Scrutinise
Key financial metrics in business plans
| Metric | What It Shows | Red Flag |
|---|---|---|
| Gross margin % | Business model quality | < 40% for SaaS |
| CAC payback period | Capital efficiency | > 18 months |
| LTV:CAC ratio | Unit economics health | < 3:1 |
| Net revenue retention | Customer love | < 100% |
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The One Question
Every slide should answer: "Why will this business succeed, and why will THIS team build it?" If a slide does not answer this, cut it.
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Tanvir Tuhin
AI consultant, digital marketer, and study abroad mentor based in Aberdeen, UK. Founder of JJAT Education.
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